2 - 1 Copyright © 2009 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin

2 - 2 Chapter 2 The Entrepreneurial Mind: Crafting a Personal Entrepreneurial Strategy

2 - 3 Achieving Entrepreneurial Greatness Three core principles of Marion Labs and the Kauffman Foundation: 1.Treat others as you would want to be treated 2.Share the wealth that is created with all those who have contributed to it at all levels 3.Give back to the community

2 - 4 Leadership and Human Behavior A single psychological model of entrepreneurship has been supported by research But, behavioral scientists, venture capitalists, investors, and entrepreneurs agree the venture will depend a great deal upon the talent and behavior of the lead entrepreneur and his or her team Myths still exist about entrepreneurs and entrepreneurship

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2 - 7 Converging on the Entrepreneurial Mind Desirable and Acquirable Attitudes, Habits and Behaviors Six Dominant Themes 1.Commitment and Determination 2.Leadership 3.Opportunity Obsession 4.Tolerance of Risk, Ambiguity and Uncertainty 5.Creativity, Self-Reliance, and Adaptability 6.Motivation to Excel

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Three Important Aspects of Courage 1.Moral strength and principles 2.Being a fearless experimenter 3.A lack of fear of failing at the experiment and most undertakings and a lack of fear of conflict that may arise.

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The Entrepreneurial Mind in Action Successful entrepreneurs have a wide range of personality types Research has considered genetics, family, education, career experience, etc., but no psychological model of entrepreneurship has been supported. Acquired skills are more important that specific inherent traits

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The Concept of Apprenticeship Shaping and Managing an Apprenticeship Windows of Apprenticeship The Concept of Apprenticeship: Acquiring the 50,000 Chunks Role Models Myths and Realities What Can Be Learned?

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A Word of Caution Leadership and achievement, the heart of the entrepreneur, are not measured by IQ tests, SATs, or GMAT scores and include: Leadership skills Interpersonal skills Team building and team playing Creativity and ingenuity Motivation Learning skills (versus knowledge) Persistence and determination Values, ethics, honesty and integrity Goal-setting orientation Self-discipline Frugality Resourcefulness Resiliency and capacity to handle adversity Ability to seek, listen, and use feedback Reliability Dependability Sense of humor

Exercises The “Crafting a Personal Entrepreneurship Strategy” exercise addresses the apprenticeship issue further. The “Personal Entrepreneurial Strategy” exercise is an inventory of one’s entrepreneurial abilities.

Crafting a Personal Entrepreneurial Strategy A Conceptual Scheme for Self Assessment Crafting an Entrepreneurial Strategy Profiling the Past Profiling the Present Getting Constructive Feedback Putting it all Together Thinking Ahead

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Personal Entrepreneurial Strategy Gather data both from yourself (past and present profiles) Gather data from others (constructive feedback) Evaluate the data you have Think ahead Craft your personal entrepreneurial strategy Estimated time to complete this important planning and goal setting exercise is 90 minutes to three hours

Reasons for Planning Planning helps the entrepreneur with the following: Managing the risks and uncertainties of the future Working smarter rather than harder Developing and updating a keener strategy by testing the sensibility of his or her ideas and approaches with others

Reasons for Planning Planning helps the entrepreneur with the following: Motivating Achieving “results orientation” Managing and coping with what is by nature a stressful role

Self Assessment Generate data through observation of his or her thoughts and actions and by getting feedback from others for the purposes of the following: Becoming aware of blind spots Reinforcing or changing existing perceptions of both strengths and weaknesses Study the data generated

Self Assessment Develop insights Establish apprenticeship goals to gain any learning, experience, and so forth Determine goals and opportunities to be seized

Constructive Feedback Solicit feedback from those who know you well and who can be trusted Seek specific comments in particularly important areas and probe for detail if the feedback is unclear Recognize that feedback is most helpful if it is neither all positive nor all negative

Constructive Feedback Ask for feedback in writing for contemplation and so feedback from various sources can be pulled together Be honest and straightforward with yourself and with others Avoid game playing or hidden agendas; avoid defensiveness over negative comments Listen carefully to what is being said and think about it; avoid answering, debating, or rationalizing

Constructive Feedback Assess whether all important information has been considered and you have been realistic in your inferences and conclusions Request help in identifying common threads or patterns, possible implications of self-assessment data and certain weaknesses, and other relevant information that is missing Seek additional feedback from others to verify feedback and to supplement data Reach final conclusions at a later time

Effective Goal Setting Establishment of goals that are specific and concrete, measurable, related to time, realistic, and attainable Establishment of priorities, including the identification of conflicts and trade-offs and how these can be resolved Identification of potential problems and obstacles that could prevent goals from being attained

Effective Goal Setting Specification of action steps that are to be performed to accomplish the goal Indication of how results will be measured Establishment of milestones for reviewing progress and tying these to specific dates on the calendar

Effective Goal Setting Identification of risk involved in meeting the goals Identification of help and other resources that may be needed to obtain goals Periodic review of progress and revision of goals